Policy on Loans To Members
Purpose and Scope
The objective of this policy is to provide a framework for the provision and administration of loans to members experiencing financial hardship resulting from disciplinary measures applied by the employer.
Loan Application Review Committee
A Committee (the “Review Committee”) comprised of the President or a designate, the COO and Executive Secretary and the General Counsel, shall be responsible for reviewing loan applications received from the Institute members under this policy. The Review Committee will make a recommendation to the Institute’s Board of Directors as to the merits of the application.
Granting or Denying Loan Applications
The decision to grant or deny the member’s application will rest with the Board of Directors. The Review Committee will make the necessary enquiries regarding the status of ongoing cases and will make recommendations to the Board as required.
A member is eligible for a loan under this Policy if he/she:
1. Is a member of a bargaining unit for which the Institute is the Bargaining Agent;
2. If the member is being represented by the Institute in a disciplinary suspension of more than 30 days or a discharge;
3. Has made attempts to obtain financial assistance from a bank or financial institution and is able to demonstrate ineligibility for a loan from this source;
4. Signs a Promissory Note and repayment schedule in a form required by the Institute.
The maximum loan granted will not exceed $5,000 and will be interest free.
The loan will become payable immediately upon receipt by the member of any amount obtained through settlement or judgment. In all cases, repayment of the loan will be required in full within 24 months of the issuance of the loan.
Upon request, the member will provide any financial or other information required from time to time by the Institute.